Market Beats | Broadcom to Buy Back $10 Billion of Shares; Customers Rush to Apple Store Before Tariffs Hit; Price for Second Hand Tesla Drop Sharply; Sales Forecast for Switch 2 Revised Down Amid Tariffs; Traders Rush into 3x Leveraged Nasdaq Index; RMB Hits Record Low After PBOC Loosens Grip

—— Broadcom to Buy Back $10 Billion of Shares; Customers Rush to Apple Store Before Tariffs Hit; Price for Second Hand Tesla Drop Sharply; Sales Forecast for Switch 2 Revised Down Amid Tariffs; Traders Rush into 3x Leveraged Nasdaq Index; RMB Hits Record Low After PBOC Loosens Grip

1. Broadcom to Buy Back $10 Billion of Shares

Broadcom Inc., a major player in the semiconductor industry and supplier to companies like Apple Inc., has announced a substantial share buyback program. The company plans to repurchase up to $10 billion of its shares, a move reflective of its confidence in the ongoing strength and potential of the chip sector.

This decision was revealed in a statement on Monday, and the board has authorized the repurchase to continue through December 31. Following the announcement, Broadcom’s shares saw an approximate 3% increase in late trading.

This strategic financial move comes at a time when Broadcom’s stock had experienced a significant decline, falling 34% this year through the close of regular trading in New York. This downturn was part of a wider tech rout, largely driven by concerns over tariffs impacting the industry.

Broadcom’s CEO, Hock Tan, emphasized that the buyback “reflects the board’s confidence in the strength of Broadcom’s diversified semiconductor and infrastructure software product franchises.” He also highlighted the company’s strategic position to aid large cloud-computing firms in embracing generative artificial intelligence technologies, marking a key area of growth and innovation for Broadcom.

This initiative underscores Broadcom’s optimistic outlook on its future and its commitment to delivering value to its shareholders despite the broader challenges facing the tech industry.

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2. Customers Rush to Apple Store Before Tariffs Hit

The recent threats by the Trump administration to impose significant new tariffs have had a dual impact on Apple Inc. While the looming tariffs sent Apple’s share price tumbling, they unexpectedly spurred a surge in customer visits to retail stores. Many consumers, worried about potential price increases, rushed to purchase iPhones before the tariffs could take effect.

Across the United States, Apple store employees observed an unusual uptick in traffic, akin to the holiday shopping rush, as customers flocked to stores over the weekend. The primary concern among shoppers was the anticipated rise in iPhone prices, given that most of these devices are manufactured in China—a country targeted with a proposed 54% tariff.

An employee from one of the Apple stores described the scene as being filled with people panic-buying phones, with nearly every customer inquiring about potential price hikes. “Almost every customer asked me if prices were going to go up soon,” said the employee, who chose to remain anonymous due to restrictions on speaking publicly.

Despite the increased store activity, which did not quite reach the levels seen during new iPhone launches, the situation was described as highly unusual for a non-holiday period. Employees noted that while there was no immediate guidance from corporate on how to handle the influx of concerned customers or their queries, the atmosphere was charged with urgency as people sought to make purchases ahead of the tariffs.

This scenario highlights how geopolitical tensions and trade policies can directly affect consumer behavior and retail operations.

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3. Price for Secondhand Tesla Drop Sharply

The resale value of used Teslas in the US and the UK is declining more rapidly than other electric vehicles (EVs), a trend attributed mainly to an influx of vehicles from expired leases rather than negative associations with the brand’s connection to Elon Musk.

In the US, the price of second-hand Teslas fell by 7% year-on-year in March, as reported by CarGurus. This decline is notably steeper compared to a modest 1.5% drop for other EV brands. Similarly, in the UK, prices for used Teslas dropped by 15%, according to Auto Trader, surpassing the average 10% decrease observed across all used electric vehicles.

This significant price reduction occurs amid speculations that Tesla’s brand reputation could be impacted by Elon Musk’s political visibility and alignment with figures on the American far right, including his relationship with President Donald Trump. Such associations could potentially influence the brand’s popularity, especially considering that EVs generally have a stronger appeal among more left-leaning consumers.

Further data from Edmunds, a US car shopping site, indicates a notable increase in the trade-in of post-2017 Teslas. These vehicles accounted for 1.4% of all trade-ins in mid-March, a rise from just 0.4% in March of the previous year. This spike in trade-ins suggests that the market is experiencing a higher availability of Teslas, contributing to the downward pressure on prices.

Overall, while the brand’s political associations might stir some consumer reservations, the primary driver behind the falling prices of used Teslas appears to be the higher volume of cars entering the market following the end of their leases.

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4. Sales Forecast for Switch 2 Revised Down Amid Tariffs

DFC Intelligence, a research firm specializing in gaming and digital media, has revised its global sales forecast for Nintendo Co.’s highly anticipated Switch 2 video game console. The new projection anticipates sales of 15 million units in 2025, a decrease from the previously estimated 17 million units. This adjustment is largely due to the economic uncertainties triggered by new tariffs imposed by US President Donald Trump.

Despite the downward revision, the Switch 2 is still expected to be the fastest-selling game console in history. However, the recent tariff announcements have cast a shadow over various industries, including gaming. The specific tariffs in question include a substantial 46% duty on goods imported from Vietnam, which is particularly impactful for Nintendo as the majority of Switch consoles are manufactured there.

This development has already had tangible effects on Nintendo’s operations, prompting the company to announce an indefinite delay in taking preorders for the Switch 2 in the United States.

DFC Intelligence highlights a significant concern that should these tariffs lead to considerable price increases for the Switch 2, many potential buyers might postpone their purchases, waiting for prices to stabilize or decrease. This scenario underscores the broader implications of trade policies on global supply chains and consumer purchasing decisions.

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5. Traders Rush into 3x Leveraged Nasdaq Index

DeepSeek, a Chinese startup known for its impactful low-cost reasoning model launched in January, is advancing its AI technology through a collaboration with Tsinghua University. Together, they are focusing on enhancing the efficiency of AI training processes to reduce operational costs significantly.

Their joint research has produced a novel approach within the field of reinforcement learning, aimed at optimizing AI models to better align with human preferences. This method enhances learning by rewarding AI systems for delivering more accurate and comprehensible responses. Although reinforcement learning has effectively accelerated AI tasks in specific domains, applying it broadly has been a challenge. DeepSeek and Tsinghua University are addressing this through what they term “self-principled critique tuning.”

The new strategy has shown promising results, outperforming existing methods and models across various benchmarks while also requiring fewer computing resources. This breakthrough has led to the development of what DeepSeek calls DeepSeek-GRM, or “generalist reward modeling.” These models not only improve performance but also do so with greater efficiency.

DeepSeek has announced plans to release these models on an open-source basis, which will allow other developers and researchers to access and build upon this innovative technology. This move places DeepSeek alongside other major players like Alibaba Group Holding Ltd. and OpenAI, who are similarly pushing the boundaries of AI by improving real-time reasoning and self-refining capabilities of AI systems.

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6. RMB Hits Record Low After PBOC Loosens Grip

The offshore yuan reached its lowest level ever recorded, amid signs that China is loosening its strict control over the currency. This shift comes as tensions escalate in the ongoing trade war with the United States.

In recent trading sessions in New York, the offshore yuan dropped by 0.5% to a record low of 7.3848 per dollar. Earlier the same day, the People’s Bank of China (PBOC) set the yuan’s daily reference rate at 7.2038 per dollar, marking the weakest level since September 2023. This move breached the 7.20 threshold, which investors often view as an unofficial indicator of China’s currency policy intentions. Similarly, the onshore yuan also fell to its weakest since September 2023.

Analysts, including Aroop Chatterjee from Wells Fargo in New York, believe that this depreciation is likely to continue and even accelerate. The PBOC’s actions suggest a shift towards allowing more flexibility in how the yuan’s value is determined. Chatterjee predicts that this managed depreciation could see the offshore yuan weakening to 7.50 per dollar or even further.

Such a trend indicates a strategic adjustment in China’s approach to managing its currency amidst heightened economic pressures from international conflicts and trade disagreements.

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7. US Stocks Tank Amid Tariffs

U.S. stocks faced a downturn on Friday afternoon, closing in negative territory as the automotive and Chinese sectors led the fall. This decline was primarily driven by an announcement from the White House confirming President Donald Trump’s intention to proceed with significant tariffs on imports from Mexico, Canada, and China starting Saturday.

Specifically, Trump’s administration plans to impose a 25% tariff on goods from Mexico and Canada, and a 10% tariff on Chinese imports. This news negatively impacted investor sentiment, particularly affecting a UBS Group AG basket of stocks deemed at risk from these tariffs, which plunged by 3.7%. Additionally, despite an initial gain, the S&P 500 Index ended the day down by 0.5%.

The financial markets reacted swiftly, with the Bloomberg Dollar Spot Index reaching a session high, indicating a flight to safety among investors. Meanwhile, the Cboe Volatility Index (VIX), often referred to as the “fear gauge,” increased to just over 16, reflecting growing uncertainty and risk aversion among traders.

The ongoing threat of tariffs has been a significant concern for U.S. equity markets since Trump’s election victory in November. Analysts and strategists have cautioned that such high levies could spark inflationary pressures, potentially leading to broader economic disruptions and negatively impacting stock valuations.

Given this backdrop, sectors such as automotive, technology, and manufacturing, which have substantial exposure to international trade, are particularly vulnerable to the effects of prolonged trade wars and the imposition of tariffs.

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